GBP/USD analysis: Brexit jitters back to the spotlight

GBP/USD Current price: 1.3525

  • Brexit headlines shake the GBP/USD a bit, but not enough to push it out of its latest range.
  • Easing dollar's demand and profit-taking may see the pair nearing 1.3600 this Friday.

The Sterling Pound enjoyed some demand at the beginning of the day, following local news indicating that the UK was preparing to remain in the customs union post-Brexit, sending the GBP/USD pair up to 1.3568, its daily high. The headline, however, was later denied by PM May, who speaking in Bulgaria said that "the United Kingdom will be leaving the customs union, we are leaving the European Union," adding that they will negotiate future customs arrangements.  Adding fuel to the fire, the Irish PM urged the government to accelerate Brexit negotiations, adding that a no deal is becoming a "serious" possibility. The pair continues trading inside the well-limited range that extends since early this month, with no clear short-term directional clues, given that in the 4 hours chart, it holds around a marginally bearish 20 SMA while technical indicators remain within negative territory. The risk is leaned to the downside, yet a break below 1.3450 the low set this week is required to anticipate additional declines ahead.  

Support levels: 1.3490 1.3450 1.3410    

Resistance levels: 1.3520 1.3570 1.3610

View Live Chart for the GBP/USD

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